The e invoice phases help businesses in Saudi Arabia move gradually toward full compliance with the requirements of ZATCA without exposing daily operations to technical or regulatory risks. Each phase is designed to address a specific level of business readiness.
In this article, we explain the e invoice phases applied to businesses in Saudi Arabia, what each phase means in practice, and how to prepare for implementation without unnecessary complexity or common mistakes.
What are E invoice phases?
The e invoice phases refer to the regulatory and technical path that businesses follow when shifting from traditional invoicing to a fully connected system with the authority platform.
This differs from e invoicing in Saudi Arabia as a general framework, because integration means direct connection and real time invoice validation.
Officially, e invoicing in Saudi Arabia is implemented in two main phases: Generation Phase, followed by Integration Phase.
Generation Phase (Issuance and Storage)
This phase focuses on establishing a solid digital invoicing foundation inside the business.
The goal is to move from paper or unstructured invoices to compliant electronic issuance and storage.
In practice, the first phase requires:
- Issuing all invoices electronically through a compliant invoicing or accounting system.
- Including mandatory fields such as VAT registration number, issue date, and invoice sequencing.
- Generating a QR code for simplified invoices when required.
- Storing invoices securely in an organized and auditable format.
At this stage, the business issues and stores invoices correctly, but has not yet started platform integration as defined within the e invoice phases framework.
Also read: E Invoice Mandatory Fields Checklist for Saudi Businesses
Integration Phase (Connection and Compliance)
This is where actual integration begins. Invoices move from being internal electronic documents to validated data exchanged with the authority platform.
This phase includes:
- Technical integration between the business system and the FATOORA portal through APIs.
- Sending invoice data for validation and receiving approval or rejection responses.
- Applying information security requirements such as digital signing or stamping.
- Generating a unique identifier for each invoice and tracking its status.
Integration is applied gradually through announced waves based on business categories and revenue size.
Once this phase starts, e invoicing becomes part of daily operations rather than an exceptional process within the e invoice phases structure.
A simplified execution roadmap before integration
Before entering the integration stage, businesses need a clear path that aligns finance and IT teams. This roadmap supports a smoother transition across the e invoice phases:
1. Assess current systems
Review ERP, accounting, or point of sale systems to confirm compliance with Saudi e invoicing requirements.
2. Align business data
Organize customer, product, tax, and invoice data. High data quality is essential for successful integration.
3. Select the technical approach
Either adopt a compliant ready made system or use a specialized integration layer without changing core infrastructure.
4. Prepare the testing environment
Run test scenarios including standard invoices, simplified invoices, credit notes, debit notes, and cancellations.
5. Error handling and internal approval
Analyze platform error messages and adjust configurations until invoices are consistently accepted.
6. Go live and monitor
Activate production integration and monitor failures or delays through reports and dashboards.
Common mistakes in E invoice integration
Many businesses face avoidable challenges during the e invoice phases, including:
- Treating integration as a purely technical task without finance or tax involvement.
- Ignoring special scenarios such as returns or adjustment notes.
- Lacking a clear monitoring mechanism for failed or rejected invoices.
Also read: Top Tax Violations and How to Avoid Them Before ZATCA Inspections
How EZ Integrated supports E invoice phases
As a ZATCA approved solution provider, EZ Integrated delivers end to end support across all e invoice phases, from readiness assessment to full integration with the FATOORA portal, including testing and operational support.
EZ Integrated helps you with:
- Assessing system readiness for e invoicing in Saudi Arabia.
- Designing and implementing compliant integration according to each wave.
- Providing ongoing support to ensure stable transmission and fast error resolution.
If you are looking for a practical approach to the e invoice phases within your organization, you can contact the EZ Integrated team for an initial consultation and a structured readiness assessment before moving forward.